Flutter Cuts 2026 Forecasts As Brazil Betting Ban And Sports Results Hit Earnings

Flutter Entertainment has reduced its full-year 2026 financial forecasts after reporting a $1.15 billion net loss for the third quarter, as the suspension of regulated betting operations in Brazil and unfavourable sports results placed pressure on the group's earnings.

Revenue increased 2% year-on-year to $3.87 billion during the three months ending 30 September, but adjusted EBITDA declined 25% to $360 million. The company's net loss widened from $789 million in the corresponding period last year, reflecting substantial non-cash impairment charges associated with its Brazilian operations.

Flutter has lowered the midpoint of its full-year revenue guidance by $300 million to $17.61 billion, while its adjusted EBITDA forecast has been reduced by $160 million to $2.495 billion. The revised outlook incorporates the disruption in Brazil alongside weaker-than-expected sports betting margins across its US and international businesses.

Brazil Betting Ban Triggers Major Impairment

Flutter recognised $873 million in non-cash impairment charges relating to its Brazilian business, including $537 million in post-tax charges associated with its 56% stake in Flutter Brazil. The business was established in 2025 following a transaction involving Betnacional owner NSX Group, for which Flutter paid $356 million.

The charges follow the Brazilian government's decision to prohibit betting activity through a provisional measure introduced by President Luiz Inácio Lula da Silva in late September. Flutter subsequently closed its Betfair operations in Brazil, leaving Betnacional as its remaining brand in the market, although the group confirmed that its operations are currently suspended.

Newly appointed CEO Dan Taylor, who succeeded Peter Jackson on 1 October, expressed frustration with the regulatory developments and confirmed that Flutter had taken immediate steps to limit expenditure.

“We are very disappointed” with the provisional measure, Taylor said in his shareholder letter. “In response, we have acted decisively; our operations are currently closed, and we have paused all discretionary and uncommitted spend.”

Taylor maintained that Brazil could remain an attractive market under an appropriate regulatory framework but emphasised that the company would exercise caution over further investment. During the subsequent earnings call, he added that Flutter was “ready to resume operating” should the regulatory environment allow betting activities to restart.

FanDuel Revenue Grows Despite Sharp Profit Decline

Flutter's US division, led by FanDuel, recorded a 6% increase in revenue to $1.46 billion, supported by 4% sportsbook growth and an 8% rise in iGaming revenue. However, adjusted EBITDA fell 94% to just $3 million, reflecting investment in emerging products and the costs associated with entering Alberta's newly regulated Canadian iGaming market in July.

The company has continued developing its US customer proposition through initiatives including FanDuel Rewards, which Taylor said had generated encouraging results and supported sportsbook market share gains. Nevertheless, the CEO acknowledged that competition across North America was intensifying, requiring faster product development and a disciplined approach to investment.

“I strongly believe we have the best assets to capture the significant opportunity in the increasingly competitive North American market,” Taylor said. “However, we must reaffirm our US leadership position by operating at a faster pace, delivering relentless product innovation, and investing where we see the opportunity to deliver long-term value.”

Prediction markets remain a significant area of investment for Flutter following the December 2025 launch of FanDuel Predicts. The platform recorded 66,000 average monthly players during the third quarter, representing a 39% increase from the preceding three months, with further investment planned for 2027.

Taylor also highlighted the growing influence of prediction market operators on US gambling advertising expenditure. Industry-wide media spending increased by more than 60% year-on-year in September and more than 50% in October, driven largely by investment from prediction market businesses.

The additional competition has increased pressure on established sportsbook operators' advertising visibility, with Taylor stressing the need to manage marketing expenditure carefully while maintaining FanDuel's market position.

UK Restructuring Follows Gambling Tax Increase

Flutter's UK and Ireland business generated $889 million in third-quarter revenue, an increase of 4% year-on-year. Online casino revenue rose 12%, offsetting a 6% decline in sportsbook revenue, while the company reported further market share gains during the period.

However, profitability across Flutter's International segment remained under pressure, with adjusted EBITDA declining 14%. The company attributed much of the impact to the increase in the UK's Remote Gaming Duty from 21% to 40%, which took effect on 1 April 2026.

The results follow Flutter's announcement in October of a restructuring programme that could result in approximately 1,400 job losses across its UK and Ireland operations. Taylor said the changes were intended to establish a more efficient cost base and strengthen the company's competitive position following the tax increase.

“We believe this right-sizes the UKI business going forward and positions us well to take market share in the post UK tax increase environment,” he explained.

The restructuring forms part of Flutter's wider efforts to improve operating efficiency while maintaining investment in its principal gambling brands.

European Growth Offsets Weakness In Asia Pacific

Flutter's Southern Europe and Africa division delivered the strongest regional revenue growth during the quarter, increasing 13% to $836 million. The performance was supported by a 17% rise in iGaming revenue, demonstrating continued demand across several of the group's established markets.

Central and Eastern Europe also recorded growth, with revenue increasing 10% to $166 million following market share gains in Georgia, Serbia and Armenia. These improvements helped offset weaker trading elsewhere, including a 4% decline in Asia Pacific revenue to $349 million, which Flutter attributed to the closure of India's real-money gaming market.

Despite the mixed regional performance, Flutter maintained that its geographical diversification remained an important advantage. Growth in European and African markets provided some protection against the regulatory disruption affecting Brazil and India, although those developments contributed to the group's reduced annual outlook.

Flutter Targets $500 Million In Additional Savings By 2029

Alongside its revised forecasts, Flutter outlined plans to simplify its operating model and generate an additional $500 million in gross operating cost and capital expenditure savings by 2029.

The programme will focus on greater adoption of artificial intelligence, organisational restructuring and the simplification of technology systems across the business. Taylor said the changes would help Flutter take advantage of its international scale while improving the speed and efficiency of decision-making.

“Flutter has an exceptional set of assets and opportunities,” he said. “Realising their full potential will require hard choices, faster decisions and strong execution.”

The new CEO also acknowledged the importance of rebuilding investor confidence following the reduced earnings forecasts and regulatory challenges affecting several markets.

“I know confidence is earned through delivery and that is what I am focused on.”

Flutter's immediate priorities will include managing the consequences of Brazil's betting restrictions, improving profitability in its US operations and delivering the restructuring measures announced across the group. The company will also continue investing in prediction markets and digital gaming products while seeking to achieve its revised financial targets for 2026.